Department of Insurance Reaches Settlement with Travel Insurance

5 years 5 months 3 weeks ago Monday, March 25 2013 Mar 25, 2013 Monday, March 25, 2013 9:24:46 AM CDT March 25, 2013 in News
By: KOMU Staff

JEFFERSON CITY - The Missouri Department of Insurance today announced that Missouri consumers who purchased travel insurance policies may be entitled to a refund of nearly $2 million. The policies were sold by the National Union Fire Insurance Company of Pittsburgh, Pa., (NUFIC) and were offered on Travelocity.com and other websites powered by Travelocity.

The department alleged NUFIC violated state law by requiring consumers to affirmatively "opt-out" of buying travel insurance policies. The settlement says NUFIC will refund $2 million to Missourians who purchased travel insurance policies from the company through Travelocity and other websites powered by Travelocity from June 1, 2009 to January 24, 2012. NUFIC sold nearly 70,000 policies of its Travel Guard Protection Plan to Missourians during that time period.

"Missourians who may have been misled into purchasing unwanted travel insurance policies will be entitled to refunds," said John M. Huff, director of the Missouri Department of Insurance. "Protecting consumer rights is essential and holding companies accountable for questionable business practices will remain at the forefront of our department's mission."
During its investigation, the department found that consumers had to affirmatively "opt-out" of NUFIC's travel insurance policy while booking flights on Travelocity or websites powered by Travelocity. If a consumer did not decline coverage, the cost of the policy, which was $24.95 per person for domestic travel and $44.95 per person for international travel, was included in the total purchase price.
In addition to refunding consumers, NUFIC agreed to stop the sale of all its travel insurance policies in Missouri through an "opt-out" methodology on Travelocity or any other websites selling the company's policies. The company also will have 150 days to refund Missouri consumers. Any unclaimed refunds will be reported to the unclaimed property division of the Missouri State Treasurer.

Market conduct exams and investigations allow the Department of Insurance to review an insurance company's practices regarding the treatment of policyholders. This includes the way premium rates are charged, how claims are handled and other responsibilities under state law. Reviews can result in refunds for consumers, fines and corrections in business practices, as well as other remedies.

Since the beginning of 2009, Market Conduct enforcement actions have generated more than $17 million in payments from insurance companies. The money goes toward refunds for consumers, General Revenue and the Missouri State School Fund.

Consumers who are entitled to a refund will be contacted by email on how to claim a refund. NUFIC will also run ads in newspapers throughout the state directing consumers to a website where they can make a claim for a refund.

 

More News

Grid
List
COLUMBIA - A pharmaceutical company has plans to come to Columbia, but is seeking a Chapter 100 Bond from the... More >>
2 hours ago Thursday, September 20 2018 Sep 20, 2018 Thursday, September 20, 2018 7:42:00 AM CDT September 20, 2018 in News
COLUMBIA - Organizations and activists aimed at improving the poverty situation in the state will gather for the 2018 Missouri... More >>
2 hours ago Thursday, September 20 2018 Sep 20, 2018 Thursday, September 20, 2018 7:24:00 AM CDT September 20, 2018 in News
JEFFERSON CITY - After being inactive for nearly a year, the Missouri Board of Education is launching a search for... More >>
15 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 7:06:00 PM CDT September 19, 2018 in News
COLUMBIA - State Rep. Cheri Toalson Reisch, R-Hallsville, is changing the way she is fundraising after an ethics complaint and... More >>
16 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 6:17:00 PM CDT September 19, 2018 in News
JEFFERSON CITY - The Jefferson City Police Department was on the scene of a double shooting Wednesday afternoon. Police... More >>
16 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 6:00:00 PM CDT September 19, 2018 in News
COLUMBIA – Some people living in Columbia's southside neighborhoods say thieves, using creative technology, are stealing from cars. Haley... More >>
16 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 5:28:00 PM CDT September 19, 2018 in News
COLUMBIA - As Welcome Home marks the first anniversary of its new shelter, a once drug-addicted veteran is artfully finding... More >>
17 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 4:19:00 PM CDT September 19, 2018 in News
FULTON- After the State Auditor's report that more local money could go to domestic violence shelters, one survivor reiterated the... More >>
18 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 3:52:00 PM CDT September 19, 2018 in News
COLUMBIA – Wednesday morning firefighters burned a simulated dorm room burn on the MU campus to show students how quickly... More >>
19 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 3:13:00 PM CDT September 19, 2018 in News
COLE COUNTY – Cole County ended its economic development contract with the Jefferson City Area Chamber of Commerce Tuesday. The... More >>
19 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 2:32:00 PM CDT September 19, 2018 in News
MEXICO - Sen. Claire McCaskill has announced she will oppose Judge Brett Kavanaugh's confirmation to the Supreme Court. McCaskill's... More >>
19 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 2:30:00 PM CDT September 19, 2018 in News
KANSAS CITY (AP) — A former prosecutor and chairman of Missouri's Democratic Party has been sentenced to two years and... More >>
20 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 1:55:00 PM CDT September 19, 2018 in Top Stories
COLUMBIA - The Columbia Fire Department ruled a Wednesday morning fire as suspicious. There were no injuries, but the... More >>
20 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 1:28:00 PM CDT September 19, 2018 in News
COLUMBIA - As rivers are still rising in the aftermath of Hurricane Florence, donations are also flooding in. However,... More >>
21 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 1:01:00 PM CDT September 19, 2018 in News
SEDALIA (AP) — A Kansas City man has pleaded guilty in the fatal shooting of another man at a trailer... More >>
21 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 12:51:00 PM CDT September 19, 2018 in Top Stories
JEFFERSON CITY (AP) — The search for Missouri's next top education official has begun. The State Board of Education... More >>
22 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 11:24:10 AM CDT September 19, 2018 in News
FULTON - UPDATE: Police have found the two boys who escaped from the Division of Youth Services. Police said... More >>
23 hours ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 10:38:00 AM CDT September 19, 2018 in Top Stories
HOWARD COUNTY - Two people are dead and two others injured after a crash on Highway 87 Tuesday afternoon. ... More >>
1 day ago Wednesday, September 19 2018 Sep 19, 2018 Wednesday, September 19, 2018 9:51:00 AM CDT September 19, 2018 in News
Columbia, MO
Broken Clouds 83°
11am 88°
12pm 91°
1pm 92°
2pm 93°